Universal banks put more strings on lending policies

Corporates are capable of holding their own, even in tough capital markets

By

Alice Hohler

January 21, 2002 5:00 p.m. GMT

Capital is a scarce commodity in today's turbulent markets, and corporates are having to be ever more resourceful and opportunistic in meeting their funding requirements. To add to their woes, consolidation in the investment banking arena is reducing the number of potential capital providers and increasing their power. There is evidence to suggest that corporates, especially those in capital-intensive sectors such as telecoms, are being squeezed by the so-called full-service or universal banks, whose attractive lending capability apparently allows them to demand more lucrative advisory and capital markets mandates...